Citizens Downgrades SAP SE (SAP) to Market Perform

​SAP SE (NYSE:SAP) is one of the Best Software Stocks to Buy According to Wall Street Analysts. On January 30, Citizens downgraded SAP SE (NYSE:SAP) from Market Outperform to Market Perform without disclosing any price targets. On the same day, BMO Capital reiterated a Buy rating on the stock but lowered the price target from $320 to $245.

​The ratings follow the company’s fiscal Q4 2025 earnings released on January 29. The company grew its quarterly revenue by 18.46% year-over-year to $11.59 billion, but fell short of the consensus by $66.21 million. However, the EPS of $1.93 topped the consensus by $0.21.

​Analysts at BMO Capital Markets noted that they lowered the price target due to the company’s failure to meet guidance for cloud computing business growth. The firm highlighted that during their meeting with the management, SAP SE (NYSE:SAP) had expressed confidence in meeting or exceeding the targets. As a result of the miss, the firm has lowered fiscal 2026 cloud growth estimates from 26% to 24% year-over-year growth.

SAP SE (NYSE:SAP) is a leader in ERP software that leverages artificial intelligence to enhance its enterprise resource planning (ERP) solutions.

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Disclosure: None. This article is originally published at Insider Monkey.